Do Technological Conditions of Production Explain Industrial Growth? The Indian Manufacturing, 1998–1999 to 2007–2008

The paper tries to assess whether the technological conditions of production can explain the sluggishness in growth in Indian manufacturing industries reflected in a stagnant share in aggregate GDP. For this purpose, the returns to scale and elasticity of factor substitution are estimated for various two-digit manufacturing industries of India for the years 1998–1999 to 2007–2008 using the translog production function specification. Most of the previous research of this kind was undertaken by using either aggregate level time-series or state-wise aggregate cross-section data. The recent availability of factory (plant) level panel data has motivated us to re-estimate the parameters of the production function for the Indian manufacturing using factory-level data. Our results clearly indicate presence of significant scale economies. We observe that the capital-labour elasticity of substitution varies across industries, being a little above one or less than one in nearly half of the cases. A multiple regression analysis has been undertaken with the help of industry-level panel data for the years 1998–1999 to 2007–2008 to find out if the manufacturing growth rate is conditioned by the parameters of the production function. Our results indicate that production function parameters do exert an important influence on the rate of growth.

     

Replication of unconditional Quantile Regressions by Firpo,Fortin and Lemieux (2009)

This paper is a narrow replication of Firpo, Fortin and Lemieux (Unconditional quantile regressions. Econometrica 2009; 77(3): 953–973), who propose a new estimation method, called ‘unconditional quantile regressions’. Using their empirical example, we confirm their results for the effects of unionization on US wage inequality during the period 1983–1985 for both conditional and unconditional quantile regressions. In addition, this paper applies the proposed estimation method to another paper by Autor, Katz and Kearney (Trends in US wage inequality: revising the revisionists. Review of Economics and Statistics 2008; 90(2): 300–323). The latter paper looks at measures of wage inequality in the US labor market data over the period 1963–2005. Copyright © 2015 John Wiley & Sons, Ltd.     

Modeling and Promoting Organic Food Purchase

This study aims at enhancing organic food product (OFP) purchase by identifying customer segments based on their knowledge and attitude related to organic food along with their demographic profile. Two scales for measuring Knowledge and Attitude related to organic food were developed to measure their levels. The scales have covered six dimensions of organic food: Healthy, Eco-friendliness, Price, Availability, Certification, and Brand. After identifying the customer segments, each segment was further segmented based on their media consumption behavior. Hierarchical followed by K means cluster analysis resulted to six distinct segments with their corresponding subsegments. Cluster analysis was again performed for each customer segment, and a media selection method (MSM) was evolved to effectively communicate with OFP customers. These methods can guide marketers in devising an appropriate communication plan for enhancing OFP purchase.     

The Relationship Between Communicable Diseases and FDI Flows: An Empirical Investigation

This paper focuses on the impact of communicable diseases, which affects the population health component of human capital on worldwide FDI flows. The model controls for endogeneity that can stem from the interconnected relationship between FDI, population health and per capita GDP. After controlling for this endogeneity, we find that communicable diseases have a statistically significant negative effect on FDI, which is 2 to 5 times larger than when using ordinary least squares. The results remain robust to alternative model specifications.     

Cooperative and non-cooperative R&D and trade costs

We examine the effect of trade liberalization on the level and mode of R&D in an international duopoly setting. Firms have the choice to invest in R&D either independently or cooperatively. A reduction in trade cost increases R&D irrespective of the mode of R&D. However, an increase in spillovers has ambiguous effects on R&D. More precisely, we find that an increase in spillover leads to higher R&D activity under cooperation but lower R&D activity under non-cooperation. Concerning cooperation versus non-cooperation, we find that firms prefer cooperation only if trade costs are low. Consumers are better off under cooperation if spillovers are high. We find that there can be a mismatch between private and social incentives. If spillovers are low and trade costs are low then cooperation might be privately profitable but socially undesirable. On the other hand, if there are large spillovers and high trade costs then cooperation may be socially desirable but not privately profitable.     

Decentralized Policymaking in a Long‐run Growth Model with Seigniorage and Taxes

The paper introduces decentralized policymaking into a game‐theoretic model with output growth through capital accumulation, and in which the determination of taxes, seigniorage and the long‐run growth rate of the economy reflects the strategic interactions between the government, the central bank and the private sector. The paper investigates, among other things, the impact on the long‐run growth rate of a higher degree of inflation aversion of the central bank and a higher degree of inefficiency in the tax system.